Establishing a company in the Hamriyah Free Zone

Economic freedom zones in the UAE, such as the Hamriyah Free Zone, are one of the main options for investors seeking to establish their companies in a stimulating and advanced business environment. These areas offer integrated infrastructure, attractive tax exemptions, and convenient licensing procedures that make them ideal for business growth and expansion. In this article, we will explore the steps to establishing a company in the Hamriyah Free Zone, as well as the benefits of investing in this region and the potential challenges that investors can face. We will also highlight what commercial activities are permitted, and how to make the most of the economic and commercial potential available in this pioneering environment.

Establishing a company in the Hamriyah Free Zone is not only an investment in the present, but rather an investment in the future, as it provides investors with multiple opportunities for growth and expansion at the local and international levels. Follow us to explore all aspects of this exciting and exhilarating process of entrepreneurship in Hamriyah Free Zone.

Establishing a company in the Hamriyah Free Zone

Establishing a company in the Hamriyah Free Zone

Specifically through the Hamriyah Free Zone Authority, it comes with the following advantages.

• Full foreign ownership
• Short and long term rental options, renewable
• Access to the markets of the Gulf Cooperation Council countries and the United Arab Emirates
• Online service for visas, renewals and other applications
• Business setup within an hour
• Access to the inner port is 4 meters deep and the deep port is 14 metres
• Special benefits on VAT
• 24 hour security
• Fixed land rental rates for the first ten years
• Communications infrastructure
• Good road network, electricity and water infrastructure
• On-site customs facilities and workplaces

Steps to establish Hamriyah Free Zone companies

To establish a company in the Hamriyah Free Zone, the following steps can be followed:

1. Choosing a company type: Decide what type of company you want to establish, such as a limited liability company (LLC) or a sole proprietorship.
2. Determine the economic activity: Determine the economic activity that the company will practice in the Hamriyah Free Zone.
3. Submitting an application: Submit an application to establish the company to the Hamriyah Free Zone Authority, and you may need to pay a registration fee.
4. Providing the required documents: Required documents usually include a copy of the passport, personal photos, and a simple business plan.
5. Signing the agreements and articles of association: After accepting the application, the necessary agreements are signed, such as the trust agreement and specifying the company’s articles of association.
6. Obtaining a license: After fulfilling all conditions and ensuring compliance with the laws, the company’s license will be issued by the Hamriyah Free Zone Authority.
7. Open a bank account: Open a bank account in the company’s name to manage financial operations.
8. Visa and Residence: If you need to reside in the UAE, apply for a work residence visa.

Establishing a company in the free zone

The UAE is distinguished by the fact that it has more than 40 free zones in addition to some areas that are being established. Therefore, establishing a company in a free zone is one of the difficult matters facing the investor, as it is difficult to choose between many areas. Therefore, Kaber Company, through its great experience in business management, undertakes By helping many investors choose the appropriate free zone for their commercial activity, it also helps in establishing and establishing a company in the free zone in the shortest time and at the lowest costs.

Ways to establish a company in the free zone

Establishing a company in a free zone can be done in multiple ways that suit the needs and goals of every entrepreneur. Here are some different ways to establish a company in a free zone:

• Sole proprietorship: An individual investor can establish a sole proprietorship in a free zone, where he is the sole owner of the company and bears all responsibilities and risks himself.
• Limited Liability Company: A limited liability company is a popular option for establishing companies in a free zone, where responsibilities and risks are divided between the partners based on their percentage of capital contribution.
• Partnership Company: A group of people or companies can form a partnership company in a free zone, where ownership shares and liabilities are determined by a written partnership agreement.
• Investment company: Investors can establish an investment company in a free zone, where the main activities of the company are to invest money in specific projects or assets inside or outside the country.
• Consolidated company: Consolidated companies (holding) are another option of owning another company or companies as a shareholding, allowing investors to diversify their investments and effectively manage a group of companies.
• Subsidiary company: The parent company can establish a subsidiary in a free zone, where the parent company is a shareholder in the capital and controls the management of the subsidiary.

Costs of establishing a company in the free zone

The costs of establishing a company in a free zone such as the Hamriyah Free Zone in Sharjah may vary based on several factors, and usually include the following points:

1. Registration and license fees: Includes company registration fees and licenses necessary to start business activity in the free zone.
2. Office costs and rent: Companies must have an office in the free zone, and rental costs vary depending on the location within the free zone and the type of office required.
3. Administrative services fees: These include fees for administrative services provided by the Free Zone Authority, such as maintenance services and logistical support.
4. Legal and accounting consulting fees: You may need legal and accounting consulting to complete incorporation procedures and comply with local laws.
5. Banking fees: If you need to open a company bank account, this service may incur an administration fee.
6. Labor costs: If the company needs to hire labor, you must include salary costs and fringe benefits for employees.
7. Accommodation and visa costs: If you require a residence visa to work in the UAE, there will be visa costs and accommodation fees.

Documents required to establish a company in the free zone

To establish a company in a free zone in the UAE, you usually need to submit a set of basic documents. The required documents may vary slightly depending on the type of company and the free zone you choose, but generally, here are the common documents you may need:

• A copy of the passport: for both shareholders and directors concerned with the company.
• Personal photos: of both shareholders and relevant directors of the company.
• A simple business plan: It explains the company’s goals and its financial and administrative plans.
• Company establishment application form: submitted to the chosen free zone authority.
• Trust Agreement or Articles of Association: A document setting out the basic details of the company such as business activities and the rights of shareholders and directors.
• Proof of the company’s legal headquarters: This usually requires a lease or ownership contract for the place where the company will be based.
• Simple financial report: It can be requested in some cases to show the financial capacity of the company.
• Additional documents as needed: You may need additional documents depending on the type of company and the requirements of the local authorities in the free zone.

In this article, we have discussed the journey of establishing companies in the Hamriyah Free Zone , which is one of the leading free zones in the United Arab Emirates that offers an ideal investment environment for investors. The Hamriyah Free Zone has many benefits that make it an attractive option for those looking to start a business, from tax exemptions to simplified and quick registration procedures.

Using state-of-the-art infrastructure and advanced technology, businesses in Hamriyah Free Zone can thrive and grow rapidly, enhancing access to regional and global markets efficiently. In addition, full foreign ownership allows investors to manage their companies efficiently without the need for local partners.

Ultimately, entrepreneurs must take advantage of the vast opportunities offered by freedom areas like Al Hamriyah, and invest smartly and with good planning to ensure the long-term success of their businesses. Certainly, establishing a company in the Hamriyah Free Zone represents a strategic step towards building a prosperous and sustainable future in the growing global business market.

The most important frequently asked questions about establishing a company in the free zone